Assume that a firm has the following capital structure and costs:

Source of Capital Target Market Proportions Cost for source

Long-term debt 40% 7.6% (this is the BEFORE-tax cost)

Preferred stock 10% 11.2%

Common-stock equity 50% k_RE = 14.3% k_s = 15.2%

The firm has a tx rate of 40%.

The firm has $1,000,000 of retained earnings available.

What is the weighted average cost of capital after all of the retained earnings have been exhausted (the cost when you are using new issue of common stock for the common-stock equity portion of the target capital structure)?